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Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $299.600; materials of $404,000 and direct labor of $214.000 During the year Adams incurred $412.000 in materials costs, $414,700 in overhead costs and $218,000 in direct labor costs. Compute the overhead application rate. 140% 71% 188% 190%. 74% o Oo to seach